The insolvency tribunal, National Company Law Tribunal (NCLT), on Monday (April 8) granted a further extension of 60 days for the resolution process of grounded airline Go First, marking the third such extension given by the tribunal.
The new deadline is set for June 3, extending the previous deadline from April 4.
A two-member bench of the Delhi-based NCLT admitted the request for the extension by the resolution professional (RP) of Go First. The representatives seeked an extension of the timeline to complete the corporate insolvency resolution process (CIRP).
A look at previous deadlines and IBC regulations
Previously, the NCLT had extended the deadline to April 4 from February 13. This was after the tribunal on November 23 last year granted an extension of 90 days, which ended on February 4.
According to the Insolvency & Bankruptcy Code (IBC), CIRP should be completed within 330 days, which includes the time taken during litigations.
Under IBC Section 12(1), CIRP should be completed within 180 days. However, the maximum duration for completing CIRP, including extensions and litigation periods, is capped at 330 days. Failure to adhere to this timeline may result in the corporate debtor being subjected to liquidation.
Go First, which ceased flight operations on May 3, 2023, had its plea for voluntary insolvency resolution proceedings admitted by the NCLT on May 10, 2023.